Tabung Haji Act Section 24 needs urgent amendment, says analyst

An economics analyst is calling for the urgent amendment of Section 24 of the Tabung Haji Act 1995 to safeguard depositors' interests and bolster the agency's governance. Dr. Aimi Zulhazmi Abdul Rashid, an Economics Analyst at UniKL Business School, proposes several key changes.

Among the suggested amendments are maintaining conditional government guarantees, ensuring primary protection for basic haj savings while adopting a different approach for deposits exceeding a certain threshold. Additionally, Dr. Rashid advocates for Tabung Haji to be placed under a more comprehensive financial regulatory framework, subject to the same oversight as other financial institutions. He also calls for mandatory disclosures regarding investment performance, risks, and financial standing.

Dr. Rashid further suggests that amendments to Section 24 should permit two main exceptions related to Syariah Court orders concerning maintenance, mutaah (consolatory payment), and hadanah (child custody). This would allow for the execution of 'hiwalah' orders or deductions from Tabung Haji accounts under specific circumstances, aligning with the principles of 'maqasid syariah' (objectives of Islamic law), particularly the preservation of lineage.

These recommendations emerge in the context of past discussions surrounding a 2019 Royal Commission of Inquiry report on Tabung Haji. Prime Minister Datuk Seri Anwar Ibrahim previously stated that the decision not to disclose the report was to prevent a confidence crisis that could lead to the institution's collapse. He indicated that revealing alleged mismanagement that resulted in losses exceeding RM10 billion could have prompted depositors to withdraw their savings, jeopardizing Tabung Haji's financial stability.

Dr. Rashid clarifies that these proposed amendments do not imply unrestricted access to depositors' accounts. Instead, access would remain strictly controlled, subject to court orders or specific legal provisions. Other economic experts, like Prof. Dr. Ahmed Razman Abdul Latiff, support maintaining government guarantees to assure depositors and emphasize that Tabung Haji should be guaranteed similarly to other financial institutions like Permodalan Nasional Berhad (PNB) and Kumpulan Wang Simpanan Pekerja (KWSP) to foster confidence.